Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Canberra's property market is included in our pack
If you are a foreigner looking to buy property in Canberra in 2026, understanding the extra costs, taxes, and fees is essential before you commit to a purchase.
Canberra has specific rules for foreign buyers, including federal approval requirements and ongoing surcharges that do not apply to Australian residents.
We constantly update this blog post to reflect the latest rates, thresholds, and regulations so you always have accurate information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Canberra.
Overall, how much extra should I budget on top of the purchase price in Canberra in 2026?
How much are total buyer closing costs in Canberra in 2026?
As of early 2026, foreign buyers in Canberra should expect total closing costs of roughly 6% to 10% of the purchase price, which translates to AUD 60,000 to AUD 100,000 on a AUD 1 million property (approximately USD 39,000 to USD 65,000, or EUR 36,000 to EUR 60,000).
The minimum extra budget for closing costs in Canberra, when keeping expenses to the bare legal minimum and if you qualify for strong duty relief, could be as low as 1% to 2% of the price (AUD 10,000 to AUD 20,000, or USD 6,500 to USD 13,000, or EUR 6,000 to EUR 12,000), though most foreign buyers will not reach this minimum.
At the high end, foreign buyers in Canberra should realistically plan for up to 10% to 13% of the purchase price in total closing costs (AUD 100,000 to AUD 130,000 on a AUD 1 million property, or USD 65,000 to USD 84,500, or EUR 60,000 to EUR 78,000) when accounting for all potential fees and comprehensive inspections.
The main factors that determine whether your closing costs in Canberra fall at the low end or high end include the property's purchase price (which affects stamp duty tiers and foreign investment fee brackets), your eligibility for concessions, and whether you choose optional but recommended protections like building inspections and strata record checks.
What's the usual total % of fees and taxes over the purchase price in Canberra?
The usual total percentage of fees and taxes over the purchase price in Canberra for foreign buyers is around 6% to 10%, while non-foreign buyers typically pay closer to 3% to 6%.
This range covers most standard property transactions in Canberra, with the lower end applying to buyers who qualify for concessions and the higher end reflecting those who pay full stamp duty plus foreign investment approval fees.
Government taxes (primarily stamp duty and foreign investment fees) typically make up 70% to 85% of that total percentage in Canberra, while professional service fees like conveyancing, searches, and inspections account for the remaining 15% to 30%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Canberra.
What costs are always mandatory when buying in Canberra in 2026?
As of early 2026, the mandatory costs when buying property in Canberra include ACT conveyance duty (stamp duty), title registration and lodgement charges, foreign investment approval fees if you are classified as a foreign person, and practically speaking, a conveyancer or property lawyer to handle the legal transfer.
Optional but highly recommended costs for buyers in Canberra include building and pest inspections (especially for houses), strata records inspection for apartments to check for special levies or defects, and an independent property valuation if you want a price sanity check.
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What taxes do I pay when buying a property in Canberra in 2026?
What is the property transfer tax rate in Canberra in 2026?
As of early 2026, the main property transfer tax in Canberra is conveyance duty (stamp duty), which is calculated on a sliding scale based on the property's dutiable value, with rates increasing as the property value rises.
Unlike some Australian states like New South Wales or Victoria, Canberra (ACT) does not impose a separate foreign purchaser stamp duty surcharge at the time of purchase, though foreign owners do face an ongoing land tax surcharge of 0.75% of the property's Average Unimproved Value each year.
Australia uses GST instead of VAT, and for existing residential properties the sale is generally input-taxed with no GST added, but for new residential properties (which is what most foreign buyers must purchase in early 2026 due to the established dwelling ban), GST is typically included in the contract price.
Stamp duty in Canberra is payable 14 days after the title is registered with the ACT Revenue Office, and it is calculated based on the higher of the purchase price or the market value of the property.
Are there tax exemptions or reduced rates for first-time buyers in Canberra?
Eligible owner-occupiers in Canberra can access the Home Buyer Concession Scheme, which can reduce stamp duty to zero up to a certain property value threshold and provide partial concessions above that, though most foreign buyers will not qualify for these concessions.
If you buy property through a company in Canberra, you generally cannot access individual buyer concessions like first-home programs, and you may also trigger landholder duty rules if the company acquires significant ACT land holdings.
There is a tax difference between new-build and resale properties in Canberra: existing homes are generally GST-free, while new builds may have GST built into the price, and importantly, foreign persons are banned from buying established dwellings from April 2025 to March 2027 (with limited exceptions), which means most foreign buyers will only be able to purchase new builds.
To qualify for first-time buyer exemptions in Canberra, you must typically be an Australian citizen or permanent resident, intend to live in the property as your principal residence for at least one year, and meet income and property value thresholds set by the ACT Government.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Canberra in 2026?
How much does a notary or conveyancing lawyer cost in Canberra in 2026?
As of early 2026, a conveyancer or property lawyer in Canberra typically costs AUD 1,500 to AUD 3,000 (USD 975 to USD 1,950, or EUR 900 to EUR 1,800) for a straightforward purchase, rising to AUD 3,000 to AUD 6,000 (USD 1,950 to USD 3,900, or EUR 1,800 to EUR 3,600) for more complex transactions involving foreign buyers or off-the-plan purchases.
Conveyancer and lawyer fees in Canberra are typically charged as a flat rate rather than a percentage of the property price, though complex matters may incur additional hourly charges.
Translation or interpreter services for foreign buyers in Canberra typically cost AUD 50 to AUD 120 per page (USD 33 to USD 78, or EUR 30 to EUR 72) for certified translations, with rush fees adding extra if you need documents urgently.
A tax advisor in Canberra is not mandatory but highly recommended for foreign buyers, and initial structuring and first-year rental tax setup typically costs AUD 400 to AUD 1,500 (USD 260 to USD 975, or EUR 240 to EUR 900), with more complex affairs costing additional fees.
We have a whole part dedicated to these topics in our our real estate pack about Canberra.
What's the typical real estate agent fee in Canberra in 2026?
As of early 2026, the typical real estate agent fee in Canberra is around 2% to 3% of the sale price, but as a buyer, you normally pay nothing because the seller covers the agent's commission.
In Canberra, as in most of Australia, the seller pays the real estate agent fee, which means buyers typically have zero agent costs unless they separately hire a buyer's agent to help them find and negotiate a property.
If you do choose to hire a buyer's agent in Canberra, fees typically range from AUD 5,000 to AUD 15,000 (USD 3,250 to USD 9,750, or EUR 3,000 to EUR 9,000) as a flat fee, or around 1% to 2% of the purchase price.
How much do legal checks cost (title, liens, permits) in Canberra?
Legal checks in Canberra, including title search, encumbrances verification, planning checks, and permits review, typically cost AUD 300 to AUD 900 (USD 195 to USD 585, or EUR 180 to EUR 540) in total, depending on the property type and complexity.
A property valuation fee in Canberra typically costs AUD 300 to AUD 600 (USD 195 to USD 390, or EUR 180 to EUR 360) for a standard residential valuation, whether ordered independently or through your lender.
The most critical legal check that should never be skipped in Canberra is the title search, which confirms you are buying from the legitimate owner and identifies any encumbrances, easements, or caveats that could affect your use of the property.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Canberra.
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What hidden or surprise costs should I watch for in Canberra right now?
What are the most common unexpected fees buyers discover in Canberra?
The most common unexpected fees buyers discover in Canberra include strata special levies for major building works or defect repairs in apartments, deferred maintenance issues like roof or drainage problems that inspections would have caught, and higher-than-expected government charges bundled into rates notices such as the Safer Families Levy (AUD 60 for 2025-26).
Yes, there are potentially unpaid property taxes or debts you could inherit in Canberra, which is why the conveyancing process includes checks to identify outstanding charges, though you should always verify the settlement adjustment statement carefully.
Buyers in Canberra can be targeted by scams involving fake listings, pressure to pay "holding deposits" to personal accounts, or forged documents, and you can avoid this by only paying deposits into trust account details verified by your lawyer or conveyancer.
Fees that are usually not disclosed upfront by sellers or agents in Canberra include strata special levies (unless you specifically request records), future repair obligations in apartment buildings, and platform or arrangement costs if you plan to use short-stay rental channels later.
In our property pack covering the property buying process in Canberra, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Canberra?
If the property in Canberra has a tenant, you may face extra costs of AUD 500 to AUD 2,000 (USD 325 to USD 1,300, or EUR 300 to EUR 1,200) for property manager handover fees, compliance checks, and potential delays in settlement negotiations if vacant possession timing is unclear.
When purchasing a tenanted property in Canberra, you inherit the existing lease agreement as the new landlord, which means you must honor the lease terms, maintain the property, and follow ACT tenancy laws regarding bond transfers and rent collection.
In Canberra, you generally cannot terminate an existing lease immediately after purchase, as the lease continues under its original terms and you can only end it according to ACT residential tenancy rules, which typically require valid grounds and proper notice periods.
A sitting tenant in Canberra can affect the property's market value and negotiating position in different ways: it may reduce appeal for owner-occupiers (potentially lowering the price), but it can be attractive to investors who want immediate rental income without a vacancy period.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Canberra.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Canberra?
Which closing costs are negotiable in Canberra right now?
Closing costs that are negotiable in Canberra include conveyancer or lawyer fees (shop around for quotes), building and pest inspection scope and price, some lender fees if you are financing, and buyer's agent commissions if you choose to hire one.
Closing costs that are fixed by law and cannot be negotiated in Canberra include ACT conveyance duty (stamp duty), foreign investment application fees, and government registration and lodgement charges.
Buyers in Canberra can typically achieve a 10% to 20% discount on negotiable professional fees by obtaining multiple quotes and comparing services, though tax-based costs remain fixed regardless of negotiation efforts.
Can I ask the seller to cover some closing costs in Canberra?
In Canberra, it is uncommon for sellers to directly cover buyer closing costs, though you can ask; the more typical approach is to negotiate a lower purchase price or request repairs and credits as part of the contract conditions.
Sellers in Canberra are most commonly willing to contribute to costs like minor repairs, pre-settlement cleaning, or price reductions rather than directly paying buyer closing costs, which is not a standard practice in Australian property transactions.
Sellers in Canberra are more likely to accept covering some costs or reducing the price when the property has been on the market for a long time, when there are competing similar listings, or during slower market conditions with fewer active buyers.
Is price bargaining common in Canberra in 2026?
As of early 2026, price bargaining is a normal part of buying property in Canberra, though how much room you have to negotiate depends on current market conditions, the property type, and how motivated the seller is.
Buyers in Canberra typically aim for around 2% to 6% below the asking price as a starting negotiation band (AUD 20,000 to AUD 60,000 on a AUD 1 million property, or USD 13,000 to USD 39,000, or EUR 12,000 to EUR 36,000), though highly competitive listings may sell at or above asking price.
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What monthly, quarterly or annual costs will I pay as an owner in Canberra?
What's the realistic monthly owner budget in Canberra right now?
A realistic monthly owner budget in Canberra, excluding mortgage payments, ranges from AUD 500 to AUD 1,200 per month for an apartment (USD 325 to USD 780, or EUR 300 to EUR 720) and AUD 350 to AUD 900 per month for a house (USD 230 to USD 585, or EUR 210 to EUR 540).
The main recurring expense categories that make up this monthly budget in Canberra include government rates and levies (like the Safer Families Levy), strata fees for apartments, utilities, building insurance, and a maintenance allowance.
The realistic low-to-high range for monthly owner costs in Canberra depends heavily on property type: a modest house without strata fees sits at the low end around AUD 350 per month (USD 230 or EUR 210), while a larger apartment with high strata levies in a building with amenities can reach AUD 1,200 per month (USD 780 or EUR 720) or more.
The monthly cost that tends to vary the most in Canberra is strata (owners corporation) levies, because these depend on the building's age, amenities, size of the sinking fund, and whether any special levies have been issued for major repairs.
You can see how this budget affect your gross and rental yields in Canberra here.
What is the annual property tax amount in Canberra in 2026?
As of early 2026, there is no single annual property tax in Canberra; instead, if you live in the property as your principal residence you generally do not pay land tax, but if it is not your principal residence (such as a rental or second home) then land tax applies, and foreign owners must add a 0.75% foreign ownership surcharge on top.
The realistic low-to-high range for annual property taxes in Canberra depends on your situation: owner-occupiers pay only rates and levies (a few hundred to a couple thousand AUD per year), while investors face land tax that can range from AUD 1,000 to AUD 5,000 or more (USD 650 to USD 3,250, or EUR 600 to EUR 3,000) depending on the property's unimproved land value.
Land tax in Canberra is calculated based on the Average Unimproved Value (AUV) of the land, which is assessed by the ACT Government, with rates applied on a sliding scale, and the foreign ownership surcharge is an additional flat 0.75% of the AUV per year.
Owner-occupiers in Canberra are generally exempt from land tax if the property is their principal place of residence, though this exemption typically does not apply to foreign persons who are non-residents for tax purposes or who do not live in the property.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Canberra in 2026?
What tax rate applies to rental income in Canberra in 2026?
As of early 2026, rental income from a Canberra property is taxed as Australian-sourced income, and foreign residents must declare this income and pay tax according to Australia's marginal tax rate brackets for foreign residents, which start at 32.5% for income up to AUD 135,000.
Yes, landlords in Canberra can deduct expenses from rental income, including loan interest, property management fees, repairs and maintenance (not capital improvements), insurance, council rates, and depreciation on eligible assets as outlined in the ATO rental properties guide.
After legitimate deductions, the effective tax rate for typical landlords in Canberra can be significantly lower than the headline rate, with many investors reporting effective rates of 15% to 25% depending on their expense profile and depreciation claims.
Foreign property owners in Canberra do pay a different rental income tax rate than Australian residents: foreign residents do not receive the tax-free threshold that residents get (AUD 18,200), which means they pay tax from the first dollar of income at 32.5% for income up to AUD 135,000.
Do I pay tax on short-term rentals in Canberra in 2026?
As of early 2026, yes, you must pay tax on short-term rental income in Canberra, as this income is treated the same as any other rental income for tax purposes, and you must also be aware of the ACT Short-Term Rental Accommodation Levy which is charged to booking platforms and may reduce your net payout.
Short-term rental income in Canberra is generally taxed the same as long-term rental income (as ordinary income subject to marginal tax rates), though the ACT Short-Term Rental Accommodation Levy is an additional cost specific to short-stay properties that is collected from booking service providers and can affect your overall returns.
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If I sell later, what taxes and fees will I pay in Canberra in 2026?
What's the total cost of selling as a % of price in Canberra in 2026?
As of early 2026, the total cost of selling a property in Canberra is typically around 2% to 4% of the sale price, though this can vary based on agent commission rates, marketing spend, and legal fees.
The realistic low-to-high percentage range for total selling costs in Canberra spans from about 1.5% (minimal marketing, lower commission) to around 5% (premium agent, extensive marketing campaign, additional legal complexity).
The specific cost categories that typically make up total selling costs in Canberra include real estate agent commission (1.5% to 3%), marketing and advertising costs (AUD 2,000 to AUD 10,000), conveyancing and legal fees (AUD 800 to AUD 2,000), and potentially early mortgage discharge fees if applicable.
The single largest contributor to selling expenses in Canberra is usually the real estate agent commission, which can account for 60% to 80% of total selling costs depending on the sale price and negotiated commission rate.
What capital gains tax applies when selling in Canberra in 2026?
As of early 2026, capital gains tax (CGT) applies to profits from selling property in Canberra at your marginal tax rate, and foreign residents are specifically subject to CGT on taxable Australian property including real estate, with a 15% withholding amount typically deducted at settlement for contracts from January 2025 onward.
Exemptions to capital gains tax in Canberra include the main residence exemption for Australian residents who have lived in the property as their principal home, though foreign residents generally cannot access this exemption and face CGT on any property sale.
Yes, foreigners selling property in Canberra face additional tax obligations: the foreign resident capital gains withholding (FRCGW) mechanism requires 15% of the sale price to be withheld at settlement (for contracts from January 2025), though this is a prepayment that gets reconciled when you file your Australian tax return.
Capital gain in Canberra is calculated as the sale price minus the cost base (original purchase price plus acquisition costs, plus capital improvements, minus any depreciation claimed), and foreign residents cannot access the 50% CGT discount that Australian residents receive for assets held over 12 months.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Canberra, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| ACT Revenue Office - Conveyance Duty | Official ACT Government tax authority for stamp duty rules. | We used it to define conveyance duty rates, payment timing, and eligibility factors. We also used it to anchor closing cost calculations for Canberra buyers. |
| ACT Revenue Office - Changes for 2025-26 | Official annual update for ACT thresholds and concessions. | We used it for 2025-26 Home Buyer Concession Scheme thresholds. We referenced these to describe minimum duty outcomes for eligible buyers. |
| ACT Revenue Office - Foreign Ownership Surcharge | Official ACT Government rule for foreign owner surcharges. | We used it to quantify the 0.75% annual surcharge on Average Unimproved Value. We applied this to estimate extra annual costs for foreign owners. |
| Foreign Investment - Schedule of Fees 2025-26 | Official Australian Government fee schedule for FIRB applications. | We used it for exact AUD fee amounts for foreign buyers by price tier. We incorporated these fixed fees into closing cost calculations. |
| Foreign Investment - Established Dwellings Ban | Official policy hub for Australia's foreign investment framework. | We used it to flag the April 2025 to March 2027 ban on foreign purchases of established homes. We highlighted this to explain why foreigners typically buy new builds. |
| ATO - GST and Residential Property | Federal tax authority guidance on GST for property. | We used it to explain when GST applies to residential property purchases. We clarified the difference between new and existing properties for tax purposes. |
| ATO - Rental Properties Guide 2025 | Official annual guide for rental income and deductible expenses. | We used it to confirm which expenses landlords can deduct from rental income. We referenced it to answer questions about rental tax obligations. |
| ATO - Foreign and Temporary Residents | Authoritative guidance on tax obligations for non-residents. | We used it to confirm foreign residents must declare Australian rental income. We also referenced it for CGT obligations on taxable Australian property. |
| Treasury - FRCGW Explanatory Materials | Official federal legislative material on CGT withholding changes. | We used it to confirm the 15% withholding rate and threshold removal from January 2025. We applied this to explain what happens when foreign owners sell. |
| ACT Revenue Office - Safer Families Levy | Official ACT page for a recurring owner levy via rates. | We used it to quantify the 2025-26 levy amount as a predictable owner cost. We included it in monthly budget calculations for Canberra owners. |
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